A Property Adjustment Order is one of the Orders that the Court has power to make in determining financial arrangements on divorce. This can include the transfer of property from one party to another.
To put a Transfer of Property Order into effect, it will be necessary for the parties to execute a Transfer Deed (Form TR1). If there is a mortgage on the property, then it would also be necessary to obtain the Mortgagee’s consent.
If one party neglects or refuses to execute the TR1, pursuant to the Transfer of Property Order, or they cannot after reasonable enquiry be found, the Court may make an Order that the TR1 is executed on behalf of that party.
This may be done by such person as the Court nominates and is often one of the partners in the firm of the client who is co-operating. It has the same effect as if the TR1 had been executed by the party themselves.
Ideally, if it is anticipated that one party might fail to co-operate with implementation of a Transfer of Property Order, provisions should be included within the Financial Remedy Order itself. Such provision would allow for a District Judge to execute the Transfer, should the other party fail to co-operate within a fixed time scale.
If there is no such provision within the Financial Remedy Order, a separate application will need to be made to the Family Court and a hearing may be listed.
If you find yourself in this position, it is important that you obtain advise from one of our specialists as soon as possible to ensure that an Application can be made to Court promptly if necessary. This will be especially important where the transfer is conditional upon the Transferee re-mortgaging the property in their sole name and their Mortgage Offer is limited in time.
Please contact any one of our specialists in any of our offices at Boston, Lincoln, Sleaford, Spalding, Grantham and Newark.